US Dollar

King US Dollar. The Greenback. The Almighty Dollar.These are just some of the nicknames the domestic currency of the United States goes by.

Since the demise of the Sterling as the world’s premier currency — which began in the First World War and slowly eroded its dominance through the end of the Second World War — the US dollar has played an importance role in shaping global economics. It has been the most powerful currency in the world.

In fact, the US dollar is the benchmark for virtually every commodity and currency around the world. All commodities and precious metals are quoted in US dollars.

Furthermore, many countries often quote their gross domestic product (GDP) and other official statistics in US dollars rather than their own, for immediate international understanding.

US Dollar Price Rules

Because of the US dollar’s dominance, it can be viewed as the more trustworthy currency. It’s the ‘official currency’ in places such as Ecuador, El Salvador and East Timor, for example. However, it’s often accepted in other countries as a supplement to the official currency, in places like Mexico, Canada Barbados and the Cayman Islands.

The US dollar is the most widely used currency because of it’s perceived stability.

Just like any other currency, the US dollar’s value fluctuates based on economic factors within the United States, as well as central banking policies set by the Federal Reserve Bank.

Here at Markets and Money, we regularly provide insight into what’s happening in the global economy. You’ll find everything you need to know about the US dollar here.

Here come the feds to the rescue again. They’re offering a tax cut for the middle class. Not for us rich guys. No way! Under Team Trump’s tax plan, our business income, currently taxed at 35%, would be taxed at 20%. Hey, that’s good news for us. But how does that help the middle class? It won’t.

The US dollar may no longer be at the centre of the fiat currency system. China is slowly preparing the world for a time when the US dollar isn’t the heartbeat of the financial system. And it will have catastrophic consequences for the greenback.

There are two very important events occurring this week. However, you’d be forgiven for not knowing they were happening. For currency traders, this news means the US dollar should remain weak, keeping the euro higher for the rest of the year.

The dollar creeped higher against the greenback overnight, even peaking over US 80 cents at one stage. It came as the US dollar slid lower, and an uptick in commodity prices. It has since slid back under the US 80 cent mark, but some analysts believe it will rise again.

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